'Datafication' has become a buzzword that has started getting widely used in the big data sector during the past several years. So how exactly does one define 'datafication'? The simple way to explain it is the transition of any social action into online quantifiable data, thereby enabling real-time tracking and predictive analysis.
Let us take some real-life examples to explain this term.
Most of us are on multiple social platforms by now. These platforms such as Facebook or Instagram collect and monitor data about our friendships in order to market products and services to us. These online platforms also provide surveillance services to agencies, which in turn use this information to facilitate, re-direct or alter our thinking patterns. The promotions we see daily on social media are a result of this monitored data. Banking and insurance companies use data to define risk profiles, creditworthiness and other parameters. LinkedIn uses data to monitor our work life.
All of us generate large amounts of data whenever we make a phone call, send an SMS, tweet, send an email, use Facebook, watch a movie, withdraw money from an ATM, use a credit card or even pass any surveillance camera. Datafication is significantly distinct from digitisation. In fact, datafication is much more exhaustive than digitisation. This vast quantity of data contains information about our entire identity and behaviour. Algorithms control the content flow displayed to us through search engines, for the news we read on Facebook and Twitter, the purchases we make via loyalty programs, the movies we watch on Netflix and the music we listen to on Spotify. Our behaviours are logged, collected and analysed by a growing number of operators for a growing number of reasons. At the same time, the data-driven and automated society is also growing exponentially.
A good datafication or data-driven company has established a solid framework and culture where data is prized, protected and effectively utilised to make decisions across the entire organisation. To name a few - McDonald's, Netflix, Google, Uber, Spotify and DBS bank come to mind as great examples. Imagine using predictive analysis so wonderfully well as to understand what their customers want and would be receptive to. With data and analytics, organisations and governments will be able to better understand even their workforce, manage their talent pipeline without unnecessary biases creeping in. DBS, for example, trained over 16,000 of its employees in data analytics.
But here is the catch. This data-driven development also poses immediate and significant challenges to both consumer protection as well as how to develop the supervision methods and the role of the authorities. It therefore comes as no surprise when we hear almost daily news about data being made available, hacked, sold or used without permission, thereby increasing the angst and concerns of the common person. How else could one explain the barrage of spam emails or unwanted, unsolicited calls coming to us?
As consumers, we are made to commit to hundreds of agreements in the course of our daily, digitalised lives. Almost all these agreements run into several pages of legalese, most of which we do not understand. What are the implications of such complex agreements that can only be understood and influenced by one of the parties and most likely, those parties turn out to be the more influential and powerful ones? Seen from a consumer perspective, user agreements should certainly be shorter, clearer, easier to influence individually and fair to both sides.
Which then brings us to the most important issue of today’s digitised and digitalised world - Digital Trust. Until recently, globally acclaimed organisations and service providers built their reputation and trust on attributes such as quality of product, service, quality of commitments made, compliances kept etc. Going forward, successful organisations of the future will be measured on all the above plus the most key additional ingredient – Digital Trust. And this would equally apply to governments and government institutions.
Digital Trust therefore is an essential component of the rising global economy which is increasingly dependent on connectivity, data usage, and new technology. To be trustworthy means to be worthy of another person’s trust. Technology therefore must be both secure and used properly. Due to a lack of comprehension regarding these two issues, individuals are distrustful of digitisation. Lack of security, lack of transparency, ethical concerns, etc are contributing to an increase in mistrust of digital technologies.
The increasing interconnection of governments, organisations, industrial equipment and personal gadgets has increased the demand for cyber and privacy threats. A majority of firms are now digital, and cybersecurity is a crucial selling point to attract clients. Users share an increasing amount of personal information online, putting them at risk and increasing the importance of their trust in the organisation.
Surveys conducted by professionals across various industries have found that security is the cornerstone of digital trust, ranking it second only to IT strategy and governance in its importance. This spotlights the pivotal role that IT and security professionals play in fostering a trustworthy digital ecosystem. The importance of digital trust extends beyond the financial health of companies.
As the digital landscape continues to evolve, the importance of digital trust will only continue to grow. Companies that prioritise security, data integrity and privacy while fostering collaboration among relevant teams will be better positioned to navigate the challenges ahead and maintain the trust of their customers and partners.
Are a majority of good organisations, governments, private institutions, online players rising to very high levels of digital trust? Or can we all feel and sense the unease of a fair amount of 'greenwashing' and hurriedly made 'protocol documents' just to provide lip service? Time will be the final judge for us as a society.
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